Venice, Italy is probably best known for canals.
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Indeed it is - the city is on a shallow lagoon. Surprisingly perhaps, also Birmingham and its conurbation in the English Midlands, and often stated as having as much if not more miles of canals than Venice. These were cut in the 18-19C to provide freight transport routes, and much of the network survives though now used for pleasure-cruising.
I do not know of there being any cities of canals but there are many canals in Italy, such as the grand canal.
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I am not sure if there is one definite "City of Canals" except perhaps in tourist brochures, but Venice (Italy), Amsterdam (Holland) and the Birmingham conurbation (England) are all likely candidates.
Venice with 177 canals
Birmingham has the most canals out of any European city.
Venice
Birmingham
Venice
The city is famous for its canals.
Birmingham
Venice
Venice.
You are asking about Venice Italy. Only the old sections of the city has canals. The entire city is on solid land.
italy and venice
florence is a separate city, the city your looking for is venice.
Amsterdam